UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): June 3, 2005
CURATIVE HEALTH SERVICES, INC.
(Exact name of registrant as specified in its charter)
Minnesota 000-50371 51-0467366
(State or other jurisdiction of (Commission (IRS Employer
incorporation or organization) File Number) Identification Number)
150 Motor Parkway
Hauppauge, New York 11788-5145
(Address of principal executive offices) (zip code)
(631) 232-7000
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report.)
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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 1.02 Termination of a Material Definitive Agreement
Swap Transaction Agreement
On June 3, 2005, Curative Health Services, Inc. (the "Company") notified
National City Bank that the Company was exercising its right to terminate its
interest rate swap agreement (the "Swap Agreement") with National City Bank,
originally entered into on May 3, 2004.
Under the Swap Agreement, the Company entered into a $90.0 million notional
amount interest rate swap on a portion of its fixed rate debt. The Swap
Agreement was used by the Company to reduce interest expense and modify exposure
to interest rate risk by converting its fixed rate debt to a floating rate
liability. Under the Swap Agreement, the Company received, on the portion of the
senior subordinated notes hedged, 10.75% fixed rate amounts in exchange for
floating interest rate (the 6-month LIBOR rate plus a premium) payments over the
life of the Swap Agreement without an exchange of the underlying principal
amount. The swap was scheduled to mature on May 2, 2011.
As a result of the termination, effective June 3, 2005, the Company and National
City Bank released each other from all obligations under the Swap Agreement,
including, without limitation, the obligation to make periodic payments
thereunder, and the Swap Agreement was canceled and terminated. The Company will
pay a $540,000 termination payment to National City Bank by June 7, 2005. No
early termination penalties were incurred by the Company.
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CURATIVE HEALTH SERVICES, INC.
Date: June 6, 2005 By: /s/ Thomas Axmacher
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Thomas Axmacher
Chief Financial Officer